Research on tablet pc adoption model

UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS:
APPLICATION OF TECHNOLOGY READINESS AND ACCEPTING
TECHNOLOGY (TRAT)
A S PATIL COLLEGE OF COMMERCE (AUTONOMOUS ),BIJAPUR
MBA-PROGRAMME 1
1. Introduction of Consumer behaviour
The study of consumer behavior focuses on how individuals make decisions to spend
their available resources (time, money, effort) on consumption-related items (Schiffman
and Kanuk, 1997). The field of consumer behavior covers a lot of ground. According
to Solomon (1996), consumer behavior is a study of the processes involved when
individuals or groups select, purchase, use, or dispose of products, services, ideas, or
experiences to satisfy needs and desires.
“A customer is the most important visitor on our premises. He is not dependent on us.
We are dependent on him. He is not an interruption on our work. He is the purpose of
it and not an outsider on our premises. He is a part of it. We are not doing him a favour
by serving him. He is doing us a favour by giving us the opportunity to do so.”
Mahatma Gandhi
Customer Vs Consumer
The term ‘customer’ and ‘consumer’ have been used synonymously most of the
time. The term customer refers to the purchaser of a product or service whereas the term
consumer refers to the end user of a product or service. The customer may or may not
be a consumer. Similarly the consumer may or may not be the customer.
Definitions
“Consumer behaviour is defined as activities people undertake when obtaining,
consuming, and disposing of products and services.”
- Roger D. Blackwell, Paul W. Miniard and James F. Engel
“Simply it can be stated that consumer behaviour is the study of “why people buy.”
“Consumer behaviour has been referred to as the psychological, social and physical
behaviour of all potential consumers as they become aware of, evaluate, purchase and
consume and tell others about products and services.”
- Suja R. Nair

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Obtaining: refers to the activities involved in purchase of a product. The activities
include searching for information regarding product features, evaluating the
alternatives, and purchasing. It also includes the place of purchase (shopping
malls/nearest grocery stores), the mode of purchase (cash/credit card), etc.
Consuming: refers to how, where, when and under what circumstances consumers use
products. How – as side dish or main dish; Where – place (home, office or restaurant),
When – time (morning or afternoon or evening) and under what circumstances (happiest
moments or with friends or when alone).
Disposing: refers to how they get rid of products and packaging. Whether they resell it
or give it to children or use it for different purpose.
“Consumer behaviour can be said to be the study of how individuals make decisions on
how to spend their available resources (time, money, effort) on various consumption-
related items.”
- Suja R. Nair
The above definition talks about various activities surrounding the ultimate
consumer and helps the marketer to gauge the consumer behaviour specifically focusing
on:
 Who buys the products or services?
 How do they buy products or services?
 Where do they buy them?
 How often do they buy them?
 When do they buy them?
 Why do they buy them? And
 How often do they use them?
These questions will help in understanding better what factors influence the
decision making process of the consumers.

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1.1.Consumer Behaviour – for Whom?
It has been said that the field of consumer behaviour holds for various categories
of people such as consumers, marketers and students of marketing.
Consumers: All the firms have started considering ‘customer’ as the ‘king’ or ‘queen’.
Interestingly, after liberalization of India’s economy, the market place is flooded with
many new players including the MNCs’ resulting in the availability of more number of
brands in every segment of the market. On account of this, the customer has started
being choicy about what to buy. Thus all firms are becoming not only customer focused
but are also trying to build relationship with them. This is done by continuously
updating knowledge, information and understanding of the customer needs and
expectations.
Awareness of such devotion from the firm has made consumers to take more interest
into their own consumption related decisions. They are keen to gain more knowledge
about taking various decisions related to products and the promotional influences that
persuade them to buy. Thus the study of consumer behaviour will enable them to
become better and wiser consumers.
Marketers: have woken up to the reality that exist in a competitive environment and
hence they have to be more focused. The marketers have observed that the choice
empowered customer cannot be taken for granted. This is particularly true because of
the rapidly rising consumer earnings, sharp drop in the savings rate and increase in
earnings resulting in a huge amount of disposable income that are spent lavishly.
Simultaneously, there are changes occurring in the personal, social and influences
making consumer more individualistic, conscious (about the products or services to
fulfill their needs). So, the study of consumer behaviour will help marketers to assess
the consumers’ needs and wants, and make better strategic marketing decisions.
Students: As students of marketing, one will be more concerned with the study of
consumer behaviour. Such a study will help to gauge into the consumer’s mind and
underst and the various consumption related aspects of individuals (consumers). As
students of marketing, understanding of consumer behaviour will make the study of
‘marketing management’ more interesting, understandable and increase awareness of its
practical implications.

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1.2. Developmentof ConsumerBehaviour as a Field of Study
Consumer behaviour as a separate field of study gained attention from the
1960s. In the absence of a history or a separate research of its own, this new discipline
drew/or borrowed concepts from other scientific disciplines such as –
 Psychology (the study of individuals)
 Sociology (the study of groups)
 Socio-psychology (the study of how persons are influenced by groups)
 Cultural anthropology (the influence of the culture and society on the individual)
 Economics (the relationship between demand and supply in the flow of
marketing activity)
Positivism: Initially, the study of consumer research was emphasizing from a
managerial perspective. In that, if the marketing manager could obtain consumption
related behaviour i.e., if they are able to predict consumer behaviour, then they could
influence it. This type of consumer behaviour approach came to be known as
‘positivism’.
Interpretism: A group of academicians who are interested in the study of consumer
behaviour and are more interested in knowing consumption behaviour going by the
influence of the various disciplines on the consumer behaviour. This approach of
studying the consumer behaviour with a view on understanding consumption behaviour
and the interpretations of such behaviour is known as ‘interpretivism or post-
modernism.’
These interpretivists have included many subjective aspects of consumer
behaviour such as the effect of moods, emotions, type of situations etc. These
interpretivists have also treated each purchase experience as unique because of the many
variables which influence the behaviour at that particular moment of time. On account
of its focus on the consumption experience, the interpretive approach is also referred to
as ‘experientalism’.

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1.3. Consumer Behaviourand Marketing
Broadly, buyers can be classified into two major categories:
Consumers (in the household sector, who buy goods or services for personal
consumption) Industrial buyers (who purchase goods and services for carrying out
activities in the various industrial units).
In this age of information explosion, and internet marketing becoming a reality,
it is all the more necessary that they (marketers) go for the creation of appropriate
database which can help them to go for ‘tailor made’ products to suit individual tastes,
preferences and buying behaviour.
The industrial or organizational markets consist of buyers who buy goods and
services needed in the process of furthering their industrial and institutionlal activities.
The behavioural differences between the domestic consumers and industrial buyers can
be done on the basis of the ultimate objective sought by them. While the domestic
consumers seek need satisfaction and value added by the purchase of the product, the
industrial buyers seek profit or measurement of improved operational efficiency. The
latter’s behaviour, thus, will be influenced by the objectives of the organization they
serve. Accordingly there is also a difference in the buying process adopted by both the
domestic consumer and industrial buyer.
A major implication of the differences in the consumer and industrial behaviour
for marketers is the relative emphasis to be placed on the various marketing mixes to be
adopted by the concerned marketer. Understanding of the consumer behaviour will
enable marketers to design effective marketing strategy and programmes.

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1.4. Consumer Modeling
Model: “A physical, visual or mathematical ….. Simplified representation of a complex
system.”
A model is very often referred to as an abstract representation of a process or
relationship. We (human beings) hold various models in our minds which allow us to
make sense of the world and also help to predict the likely course of events. Simply
stated models help us in the following way:
 They help in the development of theories
 They help to understand complex relationships
 They provide the framework for discussions and research work
The primary concern is to use the models to understand consumer behaviour.
Consumer behaviourists as well as marketers are interested in understanding how and
why certain decisions are made. The discussions have been about some of the
important models of consumer behaviour, which attempts to give a comprehensive view
of all those aspects of the buying situations which are deemed to be significant by their
creators.
Andreason (1965) proposed one of the earliest models of consumer behavior. This
model is shown in Figure 2.1.The model recognizes the importance of information in
the consumer decision-making process. It also emphasizes the importance of consumer
attitudes although it fails to consider attitudes in relation to repeat purchase behavior.

UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY
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7
Perceived beliefs,
Norms,
Values of significant others.
Other customer
Decision-makers
Information
Intrinsic
attributes
Extrinsic
attributes
Price
availability
Advocate
impersonal
sources
Independent
impersonal
sources
Advocate
personal
sources
Independent
personal
sources
Information
storage
Attitudes
towards
sources
Filtration
Personality
Direct
experience
Beliefs
Wants
Want
strength
Feelings
Disposition
Search
Select
No
action
Attitudes towards
product, substitutes,
complement
Income, budget piorities,
physical capacity,
household capacity
Ownership
Other
purchase
decisions
Hold
Key
Direct Flows
Feedbacks
Yes
No
Figure 1 Andreason, A.R (1965 Attitudes and Consumer Behavior: A Decision Model in New Research in Marketing (ed. l.
Preston). Institute of Business and Economic Research, University of California, Berkeley, pp.1-61
Constraints

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second model, which concentrates on the buying decision for a new product, was
proposed by Nicosia (1976). This model is shown in Figure 2.2. The model
concentrates on the firm's attempts to communicate with the consumer, and the
consumers' predisposition to act in a certain way. These two features are referred to as
Field One. The second stage involves the consumer in a search evaluation process,
which is influenced by attitudes. This stage is referred to as Field Two. The actual
purchase process is referred to as Field Three, and the post-purchase feedback process
is referred to as Field Four. This model was criticized by commentators because it
was not empirically tested (Zaltman, Pinson and Angelman, 1973), and because of the
fact that many of the variables were not defined (Lunn, 1974).
Perhaps, the most frequently quoted of all consumer behavior models is the Howard-
Sheth model of buyer behavior, which was developed in 1969. This model is shown in
Figure 1. The model is important because it highlights the importance of inputs to the
consumer buying process and suggests ways in which the consumer orders these
inputs before making a final decision. The Howard-Sheth model is not perfect as it
does not explain all buyer behavior. It is however, a comprehensive theory of buyer
behavior that has been developed as a result of empirical research (Horton, 1984).
Schiffman and Kanuk (1997) mentioned that many early theories concerning
consumer behavior were based on economic theory, on the notion that individuals act
rationally to maximize their benefits (satisfactions) in the purchase of goods and
services. A consumer is generally thought of as a person who identifies a need or
desire, makes a purchase, and then disposes of the product during the three stages in
the consumption process in Figure2.2 (Solomon, 1996)

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1.5. CONCEPTS AND DIMENSIONS OF CONSUMER BEHAVIOUR
Consumer behaviour is an interdisciplinary science and relatively
emerged as a new field of study in the mid to late 1060s. This new discipline is
borrowed heavily from concepts developed in other scientific disciplines such as
applied psychology, social psychology, cultural anthropology, economics and
econometrics. Therefore, it is crucial to discuss various dimensions of consumer
behaviour in the context of Indian consumer.
(a) Consumer Needs and Motivation: Consumer needs are the basis of all
modern marketing. The key to a company‟s survival, profitability and growth in a
highly competitive environment is its ability to identify and satisfy unfulfilled
consumer needs Marketers do not create needs though in some instances they
may make consumer more keenly aware of unfelt need. Motivation can be
described as the deriving force within individuals that impels them to action.
The deriving force is produced by a state of tension exists as the result of an
unfilled need. Motivation is a need-induced tension which exerts a “push” on the
individual to engage in behaviour that he expects, will gratify needs and thus
reduce tension. Individuals strive both consciously and subconsciously to reduce
this tension through behaviour that they anticipate will fulfill their needs.
Consumer motivation is dynamic in nature because their wants are frequently
changing.
(b) Consumer Psychographics: Marketing practitioner and consumer researchers
refer Psychographics as lifestyle analysis or AIO (activity, interest and
opinions) research. Consumer specific psychographics researches are related to
consumer personality, buying motives, interests, attitudes, beliefs and values.
Services specific psychographics researches are related to product attributes
such as consumer responses about products, brands or a specific consumption
situation.
Consumer perception: Perception is defined as the process by which an
individual selects, organises and interprets stimuli into a meaningful and
coherent manner. Stimuli are sensory inputs include services, packages, brand names,

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advertisements and commercials. Sensory receptors are the human organs that
receive sensory inputs. Sensation is the immediate and direct response of the
sensory organs to simple stimuli.
Learning and consumer involvement: Consumer learning is the process of
acquiring the knowledge related to purchase and consumption information.
Consumer attitudes: Attitudes are expression of inner feelings that reflects
whether a person is favorably or unfavorably predisposed to some object,
person or event. As an outcome of psychological process attitudes are not
directly observable but must be inferred from what people say or do.
(c) Demographic Factors: Demographics describe a population in terms of its
size, distribution and structure. Demographics influence buying behaviour both
directly and indirectly by affecting other attributes of individuals such as their
personal values and decision styles. There are contradictory conclusions about the
effect of age, income and gender for a particular service. Age, age-groups, education
level, income, occupation etc. serves as various dimensions of demographics. In
India additional factors such as religion, social denominations, caste, age,
family background, regional disparities instates, linguistic difference, regional
perception of class factor and the degree of impact of these factors in affecting the
social status, all play crucial role in determining the social status of an individual.
(d) Economic Factors: Wealth, home ownership, number of earning members in a
family, household income, expenditure, rate of interest, inflation, economic
conditions and investment pattern are some of the economic factors have
strong influence on consumer purchase decision.
(e) Communication and Consumer Behaviour: Communication is the
transmission of messages from a sender to a receiver by means of signals of
some sort sent through a channel. There are four basic components of all
communications: a source, a destination, a medium and a message. There are two
types of communication to which a consumer is exposed interpersonal
communication and impersonal (or mass) communication.

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(f) Socio-cultural Factors: Consumer in a group and consumer reference
groups: A group may be defined as two or more people who interact to
accomplish similar goals. Consumer relevant groups are family, friends, formal
social groups, shopping groups, consumer action groups, work groups, references
groups etc. Four basic functions provided by the family are relevant to consumer
behaviour these include; economic well-being, emotional-support, suitable family
lifestyles and family-member socialization. Sociologists and researchers have
strongly favoured the concept of Family Life Cycle (FLC) - a way to classify
family units into significant groups. FLC is a strategic tool for marketers to
segment families in terms of a series of stages spanning the life course of a
family unit. Traditional family life cycle stages are bachelorhood,
honeymooners, parenthood, post parenthood and dissolution.
Consumer and their social classes: Social class is defined as the division of members
of a society into a hierarchy of distinct status classes so that members of each
class have relatively the same status and members of all other classes have
either more or less status. Social class is measured in terms of social status of its
members and comparison of members of each social class with other social
classes. Some of the variables of the social class are occupation, income,
educational level and property ownership etc. Culture and consumer behaviour:
Culture is a sum total of learned beliefs, values and customs that serves to direct
the consumer behaviour of a particular society. Subculture can be thought as a
distinct cultural group that exists as an identifiable segment within a larger and more
complex society.
(g) Consumer and Consumerism: The word consumerism has many expressions
depending on who is using the term government, business, consumer groups,
academicians and researchers. Consumerism is defined as a social movement of
citizens and government to enhance the rights and powers of buyers in relation
to seller.

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2. BUYING PROCESS OR CONSUMER DECISION MAKING
A decision is the selection of an action from two or more alternatives. In other words,
in order to make a decision, there must be a choice of alternatives available.
If a person has a choice between making a purchase and not making a
purchase, or a choice between brands, we can say that this person is in a position to
make a decision. A “no-choice” decision is commonly referred to as a “Hobson‟s
choice.”
Buyer decision making is an attempt to solve consumer problems. A problem refers to
a discrepancy between a desired state and an ideal state which is sufficient to
arouse and activate a decision process. Thus problem can be major or minor and the
broader and more ambiguous a problem is, the more potential solutions are
generally available.
The study of buyer behaviour is the most dynamic marketing activities as the
buyer rapidly change their preferences and are affected by multiple factors at a
given point of time, are difficult to analyze. Therefore, it is necessary that
continuous study of buying behaviour must be conducted and extended. This
monitoring will make an understanding of marketing management to take effective
decisions regarding service price, distribution and promotion. A marketer
understands how buyer will respond to different service features, prices, advertising
appeals and so on will have an enormous advantage over his adversaries. When a
buyer takes a decision to buy there is no rigid rule to bind them. Sometimes the
decisions are taken on spot or after evaluating various alternatives available
and reassuring himself with the opinion of those who have already purchased
the service.
Four views of buyer decision making: Before presenting a simple model how
consumers make decisions. For depicting consumer decision making it‟s important to
consider several models of man. The term model of man refers to a general
perspective held by a significant number of people concerning how (and why)
individuals behave as they do. Following are the consumer-related models of man:-

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(1) Economic man (Traditional view): Economics reflects a world of perfect
competition and the consumer is often characterised as an economic man. The
economic theory of consumer behaviour was synthesized by Alfred Marshall
from the ideas of Classical Economists and the proponents of theory of
„Marginal Utility.‟ Economic view explains the consumer as an economic man
who buys rationally to maximize the utility (benefits) derived from a service.
To behave rationally in the economic sense a consumer would have to be aware of all
available service alternatives. The consumer would have to be capable of correctly
ranking each alternative in terms of its benefits and disadvantages. According
to leading social scientists this view is unrealistic because of three reasons (a)
people are limited by their existing skills, habits and reflexes (b) people are
limited by their existing values and goals (c) people are limited by the extent
of their knowledge. However, consumers rarely have enough information,
sufficient or sufficiently information, or even an adequate degree of involvement or
motivation to make perfect decision. Consumers are living in an imperfect world
where they do not maximise their decisions in terms of economic considerations
such as price- quantity relationships, marginal utility or indifference curves. Indeed
the consumers are often unwilling to engage in extensive decision making
activities and will instead settle for a “satisfactory” decision, one that is “good
enough.” For this reason, the economic model is often rejected as too idealistic
and simplistic. The economists described man as a rational buyer and viewed the
market as a collection of homogenous buyers.
(2) Passive man: This model is quite opposite to the economic model of man. The
passive view depicts the consumer basically submissive to the self-serving
interest and promotional efforts of marketers. Consumers are perceived as
impulsive and irrational purchasers, ready to yield to the arms and aims of
marketers. At least to some degree the passive model of the consumer was
subscribed by the hard deriving salesman who is trained to manipulate
customer. The passive man view fails to recognize that the consumer plays an equal
(if not dominant) role in many buying situations by seeking information about
service alternatives and selecting the service that appears to offer greatest
satisfaction.

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(3) Cognitive man: According to this view consumer is defined as a thinking
problem solver. Within this framework consumers are frequently depicted as
either receptive to or actively seeking services that fulfill their needs and
enrich their lives. The cognitive man focuses on the process by which
consumers seek and evaluate information about the services. There are six
types of consumer perceived risks (functional risk, economic risk, physical risk,
social risk, psychological risk and time risk) which a consumer use to handle
such as collecting information about alternatives, patronizing specific agents,
brand loyalty etc. These risks are key components of cognitive view and
consumers are viewed as information-processing systems. Consumer may use a
preference formation strategy that is “other-based” in which they allow another
person probably a trusted person or an expert to establish preferences to them.
(4) Emotional man: Marketers prefer to think of customer in terms of either
economic or passive models. Emotional man is also a reality of each of us
because of deeply rooted feeling and emotions: joy, fear, love, hope, fantasy,
sadness etc. These emotions have an impact on purchases and possessions.
Such feelings or emotions are likely to be highly involved for making a
purchase decisions. When a consumer makes any emotional purchase.

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2.1 Models of consumerbehaviour
 The Economic Model
 Learning Model
 Psychological Model
 The Sociological Model
 Howard-Sheth Model (1969)
 McNeals’ Basic Model of Consumer Behavior(1973)
 The Engel-Kollat-Blackwell (EKB) Model (1960)
 Nicosia Model(1976)
 Solomon Model of comparison process (1996)
 Theory of Innovation Diffusion Rogers Model (1995)
 Diffusion of Innovation Theory in Information System
 Theory of Reasoned Action (TRA) (1975)
 The Theory of Planned Behaviour (TPB)
 Unified Theory of Use and Acceptance of Technology
 Technology Acceptance Model (TAM)(1989)
 Technology Acceptance Model 2
 Bettman’s Information Processing Model of Consumer Choice
 Sheth-Newman Gross Model of Consumption Values
 Model of Travel-Buying Behavior Mathieson and Wall
 Stimulus-Response Model of Buyer Behavior
 Model of Consumer Decision-Making Framework

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2.2. VARIOUS MODELS OF CONSUMER BEHAVIOUR
2.2.1 Nicosia Model
This model focuses on the relationship between the firm and its potential consumers.
The firm communicates with consumers through its marketing messages (advertising),
and the consumers react to these messages by purchasing response. Looking to the
model we will find that the firm and the consumer are connected with each other, the
firm tries to influence the consumer and the consumer is influencing the firm by his
decision.
Field 1
Attitude
Field 2: Search
And evaluation
Of mean/end(s)
Experience relation(s)
(Pre action field)
Motivation
Field 4:
Feedback
Field 3: Act of
Purchase
Purchasing
Behavior
Figure2. Nicosia Model of Consumer Decision Processes
Source: Nicosia, (1976).
Message
Exposure
Subfield 1
Firms
Attribute
Subfield 2
Consumers
Attributes
(Especially
Predisposition
Search
and evaluation
Decision
(Action)
Consumption

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The Nicosia model is divided into four major fields:
Field 1: The consumer attitude based on the firms’ messages.
The first field is divided into two subfields.
The first subfield deals with the firm’s marketing environment and communication
efforts that affect consumer attitudes, the competitive environment, and characteristics
of target market. Subfield two specifies the consumer characteristics e.g., experience,
personality, and how he perceives the promotional idea toward the product in this
stage the consumer forms his attitude toward the firm’s product based on his
interpretation of the message.
Field 2: search and evaluation
The consumer will start to search for other firm’s brand and evaluate the firm’s brand
in comparison with alternate brands. In this case the firm motivates the consumer to
purchase its brands.
Field 3: The act of the purchase
The result of motivation will arise by convincing the consumer to purchase the firm
products from a specific retailer.
Field 4: Feed back
This model analyses the feedback of both the firm and the consumer after purchasing
the product. The firm will benefit from its sales data as a feedback, and the consumer
will use his experience with the product affects the individuals attitude and
predisposition’s concerning future messages from the firm.
The Nicosia model offers no detail explanation of the internal factors, which may
affect the personality of the consumer, and how the consumer develops his attitude
toward the product. For example, the consumer may find the firm’s message very
interesting, but virtually he cannot buy the firm’s brand because it contains something
prohibited according to his beliefs. Apparently it is very essential to include such
factors in the model, which give more interpretation about the attributes affecting the
decision process.

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2.2.2 Howard – Sheth model
This model suggests three levels of decision making:
1. The first level describes the extensive problem solving. At this level the consumer
does not have any basic information or knowledge about the brand and he does not
have any preferences for any product. In this situation, the consumer will seek
information about all the different brands in the market before purchasing.
2. The second level is limited problem solving. This situation exists for consumers
who have little knowledge about the market, or partial knowledge about what they
want to purchase. In order to arrive at a brand preference some comparative brand
information is sought.
3. The third level is a habitual response behavior. In this level the consumer knows
very well about the different brands and he can differentiate between the different
characteristics of each product, and he already decides to purchase a particular
product. According to the Howard-Sheth model there are four major sets of variables;
namely:
Inputs.
These input variables consist of three distinct types of stimuli (information sources) in
the consumer’s environment. The marketer in the form of product or brand
information furnishes physical brand characteristics (significative stimuli) and verbal
or visual product characteristics (symbolic stimuli). The third type is provided by the
consumer’s social environment (family, reference group, and social class). All three
types of stimuli provide inputs concerning the product class or specific brands to the
specific consumer.

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Inputs Perceptual Constructs Learning Constructs Outputs
Stimuli display
Figure 3 A Simplified Description of the Theory of Buyer Behavior Source: Howard, and
Sheth,Pp32 (1969)
Perceptual and Learning Constructs,
The central part of the model deals with the psychological variables involved when
the consumer is contemplating a decision. Some of the variables are perceptual in
nature, and are concerned with how the consumer receives and understands the
information from the input stimuli and other parts of the model. For example,
stimulus ambiguity happened when the consumer does not understand the message
from the environment. Perceptual bias occurs if the consumer distorts the information
received so that it fits his or her established needs or experience.
Significative
a. Quality
b. Price
c. Distinctive
d. Service
e. Availability
Symbolic
a. Quality
b. Price
c. Distinctive
d. Service
e. Availability
Social
a. Family
b. Reference
groups
c. Social class
Purchase
Intention
Attitude
Brand
Comprehe
n- sion
Attention
Overt
search
Stimulus
ambiguity
Attention
Percept-
ual bias
Confidence
Attitude
Motives
Choice
Criteria
Brand
Compre-
hension
Intention

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Learning constructs category, consumers’ goals, information about brands, criteria for
evaluation alternatives, preferences and buying intentions are all included. The
proposed interaction In between the different variables in the perceptual and learning
constructs and other sets give the model its distinctive advantage.
Outputs
The outputs are the results of the perceptual and learning variables and how the
consumers will response to these variables (attention, brand comprehension, attitudes,
and intention).
Exogenous(External) variables
Exogenous variables are not directly part of the decision-making process. However,
some relevant exogenous variables include the importance of the purchase, consumer
personality traits, religion, and time pressure.
The decision-making process, which Howard-Sheth Model tries to explain, takes
place at three Inputs stages: Significance, Symbolic and Social stimuli. In both
significative and symbolic stimuli, the model emphasizes on material aspects such as
price and quality. These stimuli are not applicable in every society. While in social
stimuli the model does not mention the basis of decision-making in this stimulus, such
as what influence the family decision? This may differ from one society to another.
Finally, no direct relation was drawn on the role of religion in influencing the
consumer’s decision-making processes. Religion was considered as external factor
with no real influence on consumer, which give the model obvious weakness in
anticipation the consumer decision.

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2.2.3 Engel – kollat- Model
This model was created to describe the increasing, fast-growing body of knowledge
concerning consumer behavior. This model, like in other models, has gone through
many revisions to improve its descriptive ability of the basic relationships between
components and sub-components, this model consists also of four stages;
First stage: decision-process stages
The central focus of the model is on five basic decision-process stages: Problem
recognition, search for alternatives, alternate evaluation (during which beliefs may
lead to the formation of attitudes, which in turn may result in a purchase intention)
purchase, and outcomes. But it is not necessary for every consumer to go through all
these stages; it depends on whether it is an extended or a routine problem-solving
behavior.
Second stage: Information input
At this stage the consumer gets information from marketing and non-marketing
sources, which also influence the problem recognition stage of the decision-making
process. If the consumer still does not arrive to a specific decision, the search for
external information will be activated in order to arrive to a choice or in some cases if
the consumer experience dissonance because the selected alternative is less
satisfactory than expected.

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Figure 4 .The Engel-Kollat-Blackwell Model of Consumer Behavior.
Source: Engel , Blackwell, and Miniard,(1995) page No 95
Third stage: information processing
This stage consists of the consumer’s exposure, attention, perception, acceptance, and
retention of incoming information. The consumer must first be exposed to the
message, allocate space for this information, interpret the stimuli, and retain the
message by transferring the input to long-term memory.
Stimuli:
Marketer-
Dominated,
other
Exposure
External
search
Attention
Comprehension
Perception
Yielding/
Acceptance
Retention
Dissatisfaction Satisfaction
M
E
M
O
R
Y
Problem
Recognition
Search
Internal
search
Outcomes
Purchase
Alternative
evaluation
Individual
Characteristic
s:
Motives
Values
Lifestyle
Personality
Beliefs
Attitude
Intention
Social
Influences
:
Culture
Reference
group
Family
Situational
Influences
Input
Information
Processing
Decision Process
Variables Influencing
Precision Process

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Fourth stage: variables influencing the decision process
This stage consists of individual and environmental influences that affect all five
stages of the decision process. Individual characteristics include motives, values,
lifestyle, and personality; the social influences are culture, reference groups, and
family. Situational influences, such as a consumer’s financial condition, also
influence the decision process.
This model incorporates many items, which influence consumer decision-making
such as values, lifestyle, personality and culture. The model did not show what factors
shape these items, and why different types of personality can produce different
decision-making? How will we apply these values to cope with different
personalities? Religion can explain some behavioral characteristics of the consumer,
and this will lead to better understanding of the model and will give more
comprehensive view on decision-making.

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2.2.4 Bettman’s Information Processing Model of Consumer Choice
Bettman (1979) in his model describes the consumer as possessing a limited capacity
for processing information. He implicate that the consumers rarely analyze the
complex alternatives in decision making and apply very simple strategy.
In this model there are seven major stages.
Stage No. 1: Processing capacity
In this step he assumes that the consumer has limited capacity for processing
information, consumers are not interested in complex computations and extensive
information processing. To deal with this problem, consumers are likely to select
choice strategies that make product selection an easy process.
Stage No. 2: Motivation
Motivation is located in the center of Bettman model, which influence both the
direction and the intensity of consumer choice for more information in deciding

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Figure 5. the Bettman Information-Processing Model of Consumer Choice
Source: Bettman. (1979). Pp 402
Between the alternatives Motivation is provided with hierarchy of goals’ mechanism
that provides a series of different sub-goals to simplify the choice selection. This
mechanism suggests that the consumers own experience in a specific area of market
and he doesn’t need to go through the same hierarchy every time to arrive at a
decision, which make this mechanism serves as an organizer for consumer efforts in
making a choice. No concern was given on religious motives, and how religion may
motivate the consumer in his decision. Most of the general theories of motivation such
as Maslow’s hierarchy of needs (1970) emphasizes self-achievement, the need for
power, and the need for affiliation.
Motivation
Goal
hierarchy
Processing
capacity
Attention
Information
acquisition
and
evaluation
Decision
Processes
Consumption
and
learning
processes
Perceptual
encoding
Perceptual
Scanner
and
interrupt
mechanisms
interrupt
interpretation
and
response
Memory
search
External
search
Scanner
and
interrupt
mechanisms
Interrupt
interpretation
and
response
Scanner
and
interrupt
mechanisms
Interrupt
interpretation
and
response
Scanner
and
interrupt
mechanisms
Interrupt
interpretation
and
response

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Stage No. 3: Attention and perceptual encoding.
The component of this step is quite related to the consumer's goal hierarchy. There are
two types of attention; the first type is voluntary attention, which is a conscious
allocation of processing capacity to current goals. The second is involuntary attention,
which is automatic response to disruptive events (e.g., newly acquired complex
information). Both different types of attention influence how individuals proceed in
reaching goals and making choices. The perceptual encoding accounts for the
different steps that the consumer needs to perceive the stimuli and whether he needs
more information.
Stage No. 4: Information acquisition and evaluation
If the consumer feels that the present information is inadequate, he will start to look
for more information from external sources. Newly acquired information is evaluated
and its suitability or usefulness is assessed. The consumer continues to acquire
additional information until all relevant information has been secured, or until he
finds that acquiring additional information is more costly in terms of time and money.
Stage No. 5: Memory
In this component the consumer keeps all the information he collects, and it will be
the first place to search when he need to make a choice. If this informations is not
sufficient, no doubt he will start looking again for external sources.
Stage No. 6: Decision Process
This step in Bettman’s model indicates that different types of choices are normally
made associated with other factors, which may occur during the decision process.
Specifically, this component deals with the application of heuristics or rules of thumb,
which are applied in the selection and evaluation of specific brand. These specific
heuristics a consumer uses are influenced by both individual factors (e.g., personality
differences) and situational factors (e.g., urgency of the decision); thus it is unlikely
that the same decision by the same consumer will apply in different situation or other
consumer in the same situation.

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Stage No. 7: Consumption and Learning Process
In this stage, the model discusses the future results after the purchase is done. The
consumer in this step will gain experience after evaluating the alternative. This
experience provides the consumer with information to be applied to future choice
situation. Bettman in his model emphasize on the information processing and the
capacity of the consumer to analyze this information for decision making, but no
explanation was given about the criteria by which the consumer accepts or refuses to
process some specific information.

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2.2.5 Sheth-Newman Gross Model of Consumption Values
According to this model, there are five consumption values influencing consumer
choice behavior. These are functional, social, conditional, emotional, and epistemic
values. Any or all of the five consumption values may influence the decision. Various
disciplines (including economics, sociology, several branches of psychology,
marketing and consumer behavior) have contributed theories and research findings
relevant to these values, (Sheth et al. 1991). Each consumption value in the theory is
consistent with various components of models advanced by Maslow (1970), Katona
(1971), Katz (1960), and Hanna (1980). Five consumption values form the core of the
model:
Figure 6. The five values influencing Consumer Choice Behavior
Source: Sheth, Newman, and Gross (1991) Pp159-170
The first value: Functional value
To Sheth et al. (1991) the functional value of an alternative is defined as:
"The perceived utility acquired from an alternative for functional, utilitarian, or
physical performance. An alternative acquires functional value through the possession
of salient functional, utilitarian, or physical attributes. Functional value is measured
on a profile of choice attributes."
ConsumerChoice Behavior
Functional
Value
Conditional
Value
Social
Value
Emotional
Value
Epistemic
Value

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Traditionally, functional value is presumed to be the primary driver of consumer
choice. This assumption underlies economic utility theory advanced by Marshall
(1890) and Stigler (1950) and popularly expressed in terms of "rational economic
man." An alternative’s functional value may be derived from its characteristics or
attributes, (Ferber, 1973) such as reliability, durability, and price. For example, the
decision to purchase a particular automobile may be based on fuel economy and
maintenance record.
By identifying the dominant function of a product (i.e., what benefits it provides),
marketers can emphasize these benefits in their communication and packaging.
Advertisements relevant to the function prompt more favorable thoughts about what is
being marketed and can result in a heightened preferences for both the ads and the
product, (Solomon 1996;160).
Katz (1960) developed the functional theory of attitudes. He identifies four
attitudes based on the functional values:
1) Utilitarian function. The utilitarian function is related to the basic principles of
reward and punishment. We develop some of our attitude toward products simply
based on whether these products provide pleasure or pain.
2) Value-expressive function. Attitude that performs a value-expressive function
expresses the consumers’ central values or self-concept. A person forms a product
attitude not because of its objective benefits, but because of what the product says
about him or her as a person.
3) Ego-defensive function. Attitude formed to protect the person, either from external
threats or internal feelings, perform an ego-defensive function. Example of this
function is deodorant campaigns that stress the dire, embarrassing consequences of
being caught with underarm odor in public.
4) Knowledge function. Some attitude is formed as a result of a need for order,
structure, or meaning. This need is often present when a person is in an ambiguous
situation or is confronted with a new product.

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The second value: Social value
Sheth et al. (1991;161) defined social value of an alternative as:
"The perceived utility acquired from an alternative association with one or more
specific social groups. An alternative acquires social value through association with
positively or negatively stereotyped demographic, socioeconomic, and cultural-ethnic
groups. Social value is measured on a profile choice imagery."
Social imagery refers to all relevant primary and secondary reference groups likely to
be supportive of the product consumption. Consumers acquire positive or negative
stereotypes based on their association with varied demographic (age, sex, religion),
socioeconomic (income, occupation), cultural/ethnic (race, lifestyle), or political,
ideological segments of society.
Choices involving highly visible products (e.g., clothing, jewelry) and good service to
be shared with others (e.g., gifts, products used in entertaining) are often driven by
social values. For example, a particular make of automobile is being chosen more for
the social image evoked than for its functional performance. Even products generally
thought to be functional or utilitarian, are frequently selected based on their social
values.
The third value: Emotional value
Sheth et al. (1991; 161) defined emotional value of an alternative as:
"The perceived utility acquired from an alternative’s capacity to arouse feelings or
affective states. An alternative acquires emotional value when associated with specific
feelings or when precipitating those feelings. Emotional values are measured on a
profile of feelings associated with the alternative."

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Consumption emotion refers to the set of emotional responses elicited specifically
during product usage or consumption experience, as described either by the distinctive
categories of emotional experience and expression (e.g., joy, anger, and fear) or by the
structural dimensions underlying emotional categories such as pleasantness/
unpleasantness, relaxation/action, or calmness/excitement. Goods and services are
frequently associated with emotional responses (e.g. the fear aroused while viewing
horror movie). Emotional value is often associated with aesthetic alternatives (e.g.
religion, causes). However, more tangible and seemingly utilitarian products also
have emotional values. For example, some foods arouse feeling of comfort through
their association with childhood experiences, and consumers are sometimes said to
have "love affairs" with their cars.
A number of different attempts have been made to identify the various emotions that
people experience. Izard (1977) develops the taxonomy of affective experience
approach that describes the basic emotion that people feel. He measures emotions
using ten fundamental categories: interest, joy, surprise, sadness, anger, disgust,
contempt, fear, shame, and guilt. This approach has been used extensively by
consumer researchers, for example, Westbrook and Oliver (1991).
The fourth value: Epistemic value
Sheth et al. (1991 ;162) defined epistemic value as:
"The perceived utility acquired from an alternatives capacity to arouse curiosity,
provide novelty, and/or satisfy a desire for knowledge. An alternative acquires
epistemic value by items referring to curiosity, novelty, and knowledge."
Epistemic issues refer to reasons that would justify the perceived satisfaction of
curiosity, knowledge, and exploratory needs offered by the product as a change of
pace (something new, different). Entirely new experience certainly provides epistemic
value. However, an alternative that provides a simple change of pace can also be
imbued with epistemic value. The alternative may be chosen because the consumer is
bored or satiated with his or her current brand (as in trying a new type of food), is
curious (as in visiting a new shopping complex), or has a desire to learn (as in
experiencing another culture).

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The concept of epistemic values has been influenced by theory and by several
important areas of research. Exploratory, novelty seeking, and variety seeking
motives have been suggested to active product search, trial, and switching behavior,
(Howard and Sheth 1969). One of the most significant contributors to the study of the
optimal stimulation and arousal has been Berlyne (1970), who contends that
individuals are driven to maintain an optimal or intermediate level of stimulation.
Finally, Hirschman (1980) has advanced innovativeness, or a consumer’ propensity to
adopt new products.
The Fifth value: Conditional value
Sheth et al. (1991;162) defined the conditional value as:
"The perceived utility acquired by an alternative is the result of the specific situation
or set of circumstances facing the choice maker. An alternative acquires conditional
value in the presence of antecedent physical or social contingencies that enhance its
functional or social value. Conditional value is measured on a profile of choice
contingencies."
An alternative’s utility will often depend on the situation. For example, some products
only have seasonal value (e.g., greeting cards), some are associated with once in a life
events (e.g., wedding dress), and some are used only in emergencies (e.g., hospital
services). Several areas of inquiry have also influenced conditional value. Based on
the concept of stimulus dynamism advanced by Hall (1963), Howard (1969)
recognized the importance of learning that takes place as a result of experience with a
given situation. Howard and Sheth (1969) then extended Howard’s earlier work by
defining the construct inhibitors as noninternalized forces that impede buyers’
preferences. The concept of inhibitors was more formally developed by Sheth (1974)
in his model of attitude-behavior relationship as anticipated situations and unexpected
events. Recognizing that behavior cannot be accurately predicted based on attitude or
intention alone, a number of researchers during the 1970s investigated the predictive
ability of situational factors (e.g., Sheth 1974).

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The five consumption values identified by the theory make differential contributions
in specific choice contexts. For example, a consumer may decide to purchase coins as
an inflation hedge (functional value), and also realize a sense of security (emotional
value) from the investment. Social, epistemic, and conditional values have little
influence. Of course, a choice may be influenced positively by all five consumption
values For example, to a first-time home buyer, the purchase of a home might provide
functional value (the home contains more space than the present apartment), social
values (friends are also buying homes), emotional values (the consumer feels secure
in owning a home), epistemic value (the novelty of purchasing a home is enjoyable),
and conditional value (starting a family).

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2.2.6 Solomon Model of comparison process
Figure 7. Model of comparison process Source: Solomon (1996) Pp33
Figure 2.2.7 explains some of the issus that are addressed during each stage of the
consumption process. The ‘exchange’, in which two or more organizations or people
give and receive something of value, is an integral part of marketing. He also
suggested that consumer behavior involves many different actors. The purchaser and
user of a product might not be the same person. People may also act as influences on
the buying processes. Organizations can also be involved in the buying process.
Much of marketing activity, they suggest, concentrates on adapting product offerings
to particular circumstances of target segment needs and wants. It is also common to
stimulate an already existing want through advertising and sales promotion, rather
than creating wants. The definitions and models, which have been presented so far,
have been from general marketing theory. Tourism is, by its very nature, a service
rather than a product, which may have a considerable effect on consumer behavior.
How does a consumer decide
that he/she needs a product?
What are the best sources of
information to learn more about
alternative choices?
How are consumer attitudes
toward products formed and/or
changed?
What cues do consumers use to
infer which products are
superior to others?
CONSUMER'S PERSPECTIVE MARKETER'S PERSPECTIVE
Is acquiring a product a stressful
or pleasant experience? What
does the purchase say about the
consumer?
How do situational factors, such
as time pressure or store
displays, affect the consumer’s
purchase decision?
Does the product provide pleasure
or perform its intended function?
How is the product eventually
disposed of, and what are the
environmental consequences of
this act?
What determines whether a
consumer will be satisfied with a
product and whether he/she will
buy it again?
Does this person tell others about
his/her experiences with the product
and affect their purchase decisions?
PREPURCHASE
ISSUES
PURCHASE
ISSUES
POSTPURCHASE
ISSUES

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3. TECHNOLOGY ADOPTION MODEL
3.2.1 Theory of Innovation Diffusion Rogers Model (1995)
Innovation Diffusion:
Implementation Success or Technology Adoption is depends the Compatibility of
Technology, Complexity of Technology, Relative Advantage (Perceived Need for
Technology) system (Rogers, 1995). Individuals are seen as possessing different
degrees of willingness to adopt innovations and thus it is generally observed that the
portion of the population adopting an innovation is approximately normally
distributed over time (Rogers, 1995). Breaking this normal distribution into segments
leads to the segregation of individuals into the following five categories of individual
innovativeness (from earliest to latest adopters): innovators (Figure 3), early adopters,
early majority, late majority, laggards (Rogers, 1995). Members of each category
typically possess certain distinguishing characteristics as shown below:
1. Innovators - venturesome, educated, multiple info sources
2. Early adopters - social leaders, popular, educated
3. Early majority - deliberate, many informal social contacts
4. Late majority - sceptical, traditional, lower socio-economic status
5. Laggards - neighbours and friends are main info sources, fear of debt
Figure 8. : Diffusion of Innovation Source: Roger 1995

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Diffusion of Innovation Theory in Information System
Diffusion model
The model developed by Frank Bass (1969) and describes the process of how the new
product gets adopted as an interaction between users and prospects. It has been
described as one of the most famous empirical generalizations in marketing, along
with the Dirichlet Model of repeat buying and brand choice (Mark et al 1995). The
model is widely used in forecasting especially product forecasting and technology
forecasting. Mathematically, the basic Bass diffusion is a Riccati with constant
coefficients.
This model has been widely influential in marketing and management science. In
2004 it was selected as one of the ten most frequently cited papers in the 50-year
history of Management Science. It was ranked number five, and the only marketing
paper in the list. It was subsequently reprinted in the December 2004 issue of
Management Science.
(Moore and Benbasat, 1991), working in an Information System context, expanded
upon the five factors impacting the adoption of innovations presented by Rogers,
generating eight factors (voluntariness, relative advantage, compatibility, image, ease
of use, result demonstrability, visibility, and trialability) that impact the adoption of
Information Technology. Scales used to operationalize these factors were also
validated in the study.

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Figure 9: Bass diffusion model of new adopters
Since the early applications of DOI to IS research the theory has been applied and
adapted in numerous ways. Research has, however, consistently found that technical
compatibility, technical complexity, and relative advantage (perceived need) are
important antecedents to the adoption of innovations see figure no. 4 (Bradford and
Florin, 2003; Crum et. al., 1996) leading to the generalized model.
Diffusion models only try to predict the type of customers only. But does not deal
with detailed the process of adoption. Hence does not focus more on the Consumer
Behaviour part of technology adoption.

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3.2.3 Theory of Reasoned Action (TRA) (1975)
The Theory of Reasoned Action (TRA) which was formulated in 1975 by Fishbein
and Ajzen has been used extensively in marketing research. Figure no.5presents a
diagrammatic model of the theory. TRA has been applied to explain the behaviour
beyond the acceptance of technology and includes four general concepts: behavioural
attitudes, subjective norms, intention to use and actual use. It argues that individuals
evaluate the consequences of a particular behaviour and create intentions to act that
are consistent with their evaluations. More specifically, TRA states that individuals'
behaviour can be predicted from their intentions, which can be predicted from their
attitudes and subjective norms. Following the chain of prediction further back,
attitudes can be predicted from an individual's beliefs about the consequences of the
behaviour. Subjective norms can be predicted by knowing how significant other
individuals think the behaviour should or should not be done.
Figure 10 :Theory of Reasoned Action (TRA)
A particularly helpful aspect of TRA from a technology perspective is its assertion
that any other factors that influence behavior do so only indirectly by influencing
attitude and subjective norms. Such variables would include, amongst others things,
the system design characteristics, user characteristics (including cognitive styles and
other personality variables) and task characteristics. Hence, TRA is quite appropriate
in the context of predicting the behavior of using multimedia technology. Although
TRA, is a very general theory and as such does not specify what specific beliefs
would be pertinent in particular situations.

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3.2.4 The Theory of Planned Behavior (TPB)
In exploring consumer's usage behavior, researchers adopt behaviour theories from
psychology and marketing. It is in this context that the TPB was constructed. The
TPB was proposed as an extension to the TRA mentioned earlier, by Ajzen in 1991.
The TPB sought to account for conditions where individuals do not have a complete
control over their behavior. When applied to the acceptance of information
technology systems or services, the model contains five concepts. As in TRA, it
includes behavioral attitudes, subjective norms, intention to use and actual use.
However, this theory interprets behavioral control as a perceived construct. Perceived
behavioral control covers both the intention to use and the actual usage. Actual usage
is in turn a weighted function of intention to use and perceived behavioral control.
Under this arrangement control aspects of the observation is introduced into the
model. This makes the TPB more functional in its application. Researchers have used
the TPB widely to model the acceptance of a variety of new information technologies
in businesses as well as to predict levels of usage.
Figure 11 :The Theory Planned Behaviour

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3.2.5 Unified Theory of Use and Acceptance of Technology
A recent adoption theory formulated (Venkatesh et al. 2003) Unified Theory of
Acceptance and Use of Technology (UTUAT). UTUAT includes four core elements:
performance expectancy, effort expectancy, social influence and facilitating
conditions. These elements are direct determinants of information systems usage
intention and behaviour. In addition the model proposed that gender, age, experience,
and voluntariness of use mediate the impact of the four core elements on usage
intention and behaviour.
Figure 12 :Unified Theory of Use and Acceptance of Technology

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The model has excellent explanatory power, and is able to explain up to 69 percent of
the variance in usage intention (Venkatesh et al., 2003). UTUAT has been widely
employed in studies of various IT innovations. Zhou et al. (2010) used UTUAT to
study Tablet Pc adoption, and found that performance expectancy, social influence
and facilitating conditions are direct predictors of user adoption, along with the extra
dimension of task technology fit. (Gupta,et. al., 2008) found that performance
expectancy, effort expectancy, social influence and facilitating conditions all
positively influence the use of the ICT. In addition UTUAT has been used in studying
users’ adoption of mobile wallets (Shin, 2009), health information technology
(Kijsanayotin et al., 2009) and intentions to continue using web-based learning (Chiu
and Wang, 2008).

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3.3.1 Technology Acceptance Model (TAM)(1989)
The Technology Acceptance Model (TAM) (Davis, 1989; Davis,et. al., 1989)
examines the adoption of technology based on the perceived usefulness and ease of
use of the technology by the consumer. TAM theory applies its fundamentals to the
adoptions of technology, introducing variables like Perceived Usefulness (PU) and
Perceived Ease Of Use (PEOU) and removing Subjective Norms. The objective of
TAM is to provide an “explanation of the determinants of computer acceptance that is
general, capable of explaining usage behaviour across a broad range of systems or
end-user computing technologies and user populations, while at the same time being
both parsimonious and theoretically justified” (David, et. al.,1989,). Through
TAM,(Davis,1989) posits that an individual’s behavioural intention to adopt and use a
particular technology is determined by the individual’s attitude toward it. Two factors
contribute to the development of the Attitude (A): Perceived Usefulness (PU) and
Perceived Ease of Use (PEOU).
Will this technology enhance the individual’s performance professionally or socially?
Will the use of this technology be effortless? Each of these questions is a descriptor
for the factors. The two perceptions around usefulness (utility) and use are cognitions
around the innovation of technology. Usefulness is the cognitive evaluation of the
individual regarding the utility provided by the innovation.
Use is an indicator of the cognitive effort necessary to properly deploy the
technology. The usefulness variable is heavily influenced by the ease of use.
Figure 13 :The Technology Accptance Model

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All other variables being equal, the easier the technology is perceived to be to use, the
useful it is perceived to be. A key strength of Technology Acceptance Model (TAM)
is its predictive power. It has been empirically verified as a tool for predicting
technology use (Szajna, 1996) and emerged as the dominant model in the literature
(Venkatesh, 2000; VenkateshandDavis, 1996; Szajna, 1994; Davis, 1989). Its
capability has been demonstrated to explain between 17% to 33% of the variance in
attitude and usage intentions (Thompson, et. al., 1991; Davis, et. al., 1989). The
variables introduced in this model, perceived ease of use and perceived usefulness,
continue to collect empirical support and momentum in predicted technology
acceptance behavior (Venkatesh, 2000: Venkatesh and Davis, 1996). As its popularity
is growing, Technology Acceptance Model (TAM) is being used outside of the
Information System research within the marketing discipline within consumer
research around online retail shopping (O’Cass and French, 2003;Childers, et. al.,
2001), buying intentions on the web (Gentry and Calantone, 2002) and understanding
technology-based self-service usage (Dabholkar and Bagozzi, 2002). Size as well as
the enterprise’s type of activity has an influenced on the adoption of technology
(Filiatrault and Huy 2006) Technology Acceptance Model (TAM) is a fairly efficient
model with a potential to help in understanding technology acceptance pre-service
teachers (Teo, 2010). All the independent variables (perceived usefulness, subjective
norm, and perceived ease of use) predict the attitude technology Acceptance (Shittu,
et. al, 2011).

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3.3.2 Technology Acceptance Model 2
The original TAM model extended to explain perceived usefulness and usage
intentions in terms of social influence and cognitive instrumental processes
(Venkatesh and Davis 2000). As mentioned earlier, the original TAM model was
based on Aizen’s TRA model but did not include the subjective norms construct.
Since TAM’s introduction, consequent studies have built on TAM’s promising
robustness, trying to compare TAM to its origins and with other models used in
explaining technology acceptance such as diffusion of innovation which is discussed
in section 13. Previous studies agreed upon the need for adding other variables to
serve as determinants of the major construct since the original model lacked such
determinants for Perceived Usefulness (PU) & Perceived Ease of Use (PEOU).
TAM2, an extension of TAM, includes additional key determinants of perceived
usefulness and usage intention constructs which are meant to explain the changes in
technology acceptance over time as individuals gain experience in using the targeted
technology. Figure 9 shows the proposed model referred to as TAM2. The new model
incorporates additional theoretical constructs covering social influence processes
(subjective norm, voluntariness, and image) and cognitive instrumental processes (job
relevance, output quality, result demonstrability, and perceived ease of use).
Figure 14:

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Figure 14:Technology Acceptance Model 2 (TAM2)
Venkateshand Davis explained the role of social influences in computer usage
contexts. According to them, TAM2 theorizes that the subjective norms direct effect
on intention over Perceived Usefulness (PU) & Perceived Ease Of Use (PEOU) will
occur in mandatory system usage settings. The model posits voluntariness as a
moderating variable to distinguish between mandatory versus voluntary compliance
with organizational settings. Nevertheless, subjective norms can influence intention
through Perceived Usefulness (PU) or what is called internalization.

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3.3.3 Technology Readiness Index(TRI)
Technology readiness (TR) refers to "people's propensity to embrace and use new
technologies to accomplish goals in home life and at work" (Parasuraman, 2000, p.
308). It combines the positive and negative technology-related beliefs. These beliefs
are assumed to vary among individuals. Collectively, these coexisting beliefs
determine a person's predisposition to interact with new technology (Parasuramanand
Colby 2001). Further, the findings show that these beliefs can be categorized into four
dimensions: optimism, innovativeness, discomfort, and insecurity (Parasuraman,
2000).
 Optimism is defined as "a positive view of technology and a belief that it
[technology] offers people increased control, flexibility, and efficiency in their
lives" (Parasuramanand Colby, 2001, p. 34). It generally captures positive
feelings about technology.
 Innovativeness is defined as "a tendency to be a technology pioneer and
thought leader" (Parasuramanand Colby 2001, p. 36). This dimension
generally measures to what degree individuals perceive themselves as being at
the forefront of technology adoption.
 Discomfort is defined as "a perceived lack of control over technology and a
feeling of being overwhelmed by it" (Parasuraman and Colby 2001, p. 41).
This dimension generally measures the fear and concerns people experience
when confronted with technology.
 Insecurity is defined as a "distrust of technology and scepticism about its
ability to work properly" (Parasuraman and Colby, 2001, p. 44). This
dimension focuses on concerns people may have in face of technology-based
transactions.

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Optimism and innovativeness are the drivers of technology readiness. High
score of these dimensions will increase overall technology
readiness.Discomfort and insecurity, on the other hand side, are inhibitors of
technology readiness. Thus, a high score of these dimensions will reduce
overall technology readiness (Parasuraman, 2000). Results show that the four
dimensions are fairly independent, each of them making a unique contribution
to an individual's technology readiness (Parasuraman and Colby, 2001).
Source: Parasuraman (2000, p. 34),Figure 15: Technology readiness Index
TRI emerged through an extensive multiphase research program in the United States.
In the final 36-item scale the four dimensions demonstrated, for purposes of group
analysis, a sound reliability with Cronbach's alpha ranging from .74 to .81. Further,
Parasuraman (2000) found a positive relationship between TR scores and technology-
related behaviours (i.e., ownership of new technology, use, and desirability to use in
the future). A replication in Great Britain has further strengthened the soundness of
the TRI. (Tsikriktsis 2004) extracted the same four-factor structure with Cronbach's
alpha ranging from .74 to .88. Both studies obtained large national cross sectional
samples by conducting random based telephone interviews: A total of 1000 adults
(over 18 years) participated in the United States, and 400 adults (over 16 years)
participated in Great Britain (Parasuraman, 2000; Tsikriktsis, 2004).

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3.3.4 Technology Acceptance Model 3
A third iteration of the TAM model (TAM 3) was created, combining TAM 2 and the
determinants based on perceived ease of use by incorporating the findings of previous
research in order to improve acceptance rates of new technologies. The TAM 3 model
contains both factors influencing perceived ease of use (computer self-efficacy,
computer anxiety, computer playfulness, perceptions of external control, perceived
enjoyment and objective usability) and perceived usefulness (perceived ease of use,
subjective norm, image, and result demonstrability). The goal of the revised model is
to produce practical guidance and suggestions to practitioners (Venkatesh and Bala,
2008). TAM 3 longitudinal testing by Venkatesh and Bala (2008)identifies many new
relationships between variables. Specifically, perceived ease of use, subjective norm,
image, and result demonstrability are significant predictors of perceived usefulness at
all time periods. When participants experience increasing output quality, job
relevance has a strong positive effect on perceived usefulness. Additionally, with
increasing experience, the subjective norm has less effect than perceived usefulness.
The anchors (computer self-efficacy, computer anxiety, computer playfulness, and
perceptions of external control) are significant predictors of perceived ease of use at
all points in time and adjustments of perceived enjoyment and objective usability
become significant at later times to perceived ease of use. Finally, perceived
usefulness is the strongest predictor of technology acceptance and use at all times
(Venkatesh and Bala, 2008). While research efforts to develop TAM and TAM 2 were
interested in identifying relationships between variables, TAM 3 focuses on
producing actionable points for practioners. Researchers divide their advice into two
stages: pre-implementation interventions and post-implementation (Venkatesh and
Bala, 2008). The pre-implementation stage occurs during the development and
deployment of a technology. Venkatesh and Bala (2008) suggest that
managers/administrators encourage user participation by allowing the employees to
help pick out new technology. Also, good managerial support of the new system is
needed. Lastly, they suggest managers/administrators implement an incentive
alignment, which entails matching the individual’s perception of the new technology
with his/her job requirements and value system (Venkatesh and Bala, 2008). The
TAM 3 Model is shown in figure no.10.

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Figure 16: Technology Acceptance Model 3

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As per the TAM 3 model, it is suggested that the determinants of perceived ease of
use will not influence perceived usefulness. The determinants of perceived ease of use
suggested by Venkatesh (2000) are primarily individual differences variables and
general beliefs about computers and computer use. These variables are grouped into
three categories: control beliefs, intrinsic motivation, and emotion. Perceived
usefulness is an instrumental belief that is conceptually similar to extrinsic motivation
and is cognition (as opposed to emotion) regarding the benefits of using a system. The
perceptions of control (over a system), enjoyment or playfulness related to a system,
and anxiety regarding the ability to use a system do not provide a basis for forming
perceptions of instrumental benefits of using a system. For example, control over
using a system does not guarantee that the system will enhance one’s job
performance. Similarly, higher levels of computer playfulness or enjoyment from
using a system do not mean that the system will help an individual to become more
effective (e.g., Van der Heijden, 2004). Therefore, it is expect that the determinants
of perceived ease of use will not influence perceived usefulness.
The summary of the various constructs used for in various adoption models are
summarised and listed in the table 2.

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Table 1:Models and Theories of Individual Acceptance
Models and Theories Constructs
Theory of Reasoned Action (TRA) by Fishbein and
Ajzen (1975) derives from psychology to measure
behavioral intention and performance.
Attitude
Subjective norm
Technology Acceptance Model (TAM) by Davis
(1989) develops new scale with two specific
variables to determine user acceptance of
technology.
Technology Acceptance Model 2 (TAM2) by
Venkatesh and Davis (2000) is adapted from TAM
and includes more variables.
Perceived Usefulness
Perceived Ease of Use
Subjective Norm*
Experience*
Voluntariness*
Image*
Job Relevance*
Output Quality*
Result Demonstrability*
* indicates TAM2 only
Theory of Planned Behavior (TPB) by Ajzen
(1991) extends TRA by including one more
variable to determine intention and behavior.
Attitude
Subjective norm
Perceived Behavioral Control
Combined TAM and TPB (C-TAM-TPB) by Taylor
and Todd (1995).
Perceived Usefulness
Perceived Ease of Use
Attitude
Subjective norm
Perceived Behavioral Control
Innovation Diffusion Theory (IDT) by Rogers
(1962) is adapted to information systems
innovations by Moore and Benbasat (1991). Five
attributes from Rogers’ model and two additional
constructs are identified.
Relative Advantage*
Compatibility*
Complexity*
Observability*
Trialability*
Image
Voluntariness of Use
* indicates Roger’s constructs.
Unified Theory of Acceptance and Use of
Technology Model (UTUAT) by Venkatesh et al.
(2003) integrates above theories and models to
measure user intention and usage on technology
Performance Expectancy
Effort Expectancy
Attitude toward Using Technology
Social Influence
Facilitating Conditions
Self-Efficacy
Anxiety

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Taking this into consideration, the present study focuses on Tablet pc adoption
models that influence the adoption of Tablet pc. For this purpose, Theory Technology
acceptance model (TAM) perceived risk was used to construct a conceptual model to
study the adoption Tablet pc. It is important for Tablet pc service providers to
understand the factors influencing the intention to use or adopt Tablet pc. Further, this
study also validates the model by explaining the behavioral intentions from the user’s
perspective; the findings of this research not only help Tablet manufactures to develop
a more user-accepted Tablet pc adoption, but also provide insight into the best way to
promote new systems to potential users
3.4.1 Application of Adoption Models
The application of adoption models for various technology products are summarized
and presented in table no. 2. The following table i.e. Usage technology Adoption
Model lists the key application studies carried details in the area of technology
adoption. The table gives the details of the technology selected for the study and also
the details of the adoption models used for the validation.

UNDERSTANDING NEW TECHNOLOGY BY ENGINEERING STUDENTS: APPLICATION OF TECHNOLOGY READINESS
AND ACCEPTING TECHNOLOGY (TRAT)
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53
4. Application of Technology Adoption models.
Table No : 02
Sl.No Year Name of author Sector/industries About
01 2009 Marie Pierre Healthcare A questionnaire, based on the Technology Acceptance Model (TAM), was developed.
A panel of experts in technology assessment evaluated the face and content validity of
the instrument. Two hundred and thirty-four questionnaires were distributed among
nurses and doctors of the cardiology, pulmonologist, and internal medicine
departments of a tertiary hospital. Cronbach alpha was calculated to measure the
internal consistency of the questionnaire items. Construct validity was evaluated using
interitem correlation analysis. Logistic regression analysis was performed to test the
theoretical model. Adjusted odds ratios (ORs) and their 95% confidence intervals (CIs)
were computed. Results: A response rate of 39.7% was achieved. With the exception of
one theoretical construct (Habit) that corresponds to behaviors that become
automatized, Cronbach’s alpha values were acceptably high for the remaining
constructs. Theoretical variables were well correlated with each other and with the
dependent variable. The original TAM was good at predicting telemonitoring usage
intention, Perceived Usefulness being the only significant predictor (OR: 5.28, 95% CI:
2.12–13.11). The model was still significant and more powerful when the other
theoretical variables were added. However, the only significant predictor in the
modified model was Facilitators (OR: 4.96, 95% CI: 1.59–15.55).
02 2009 Vincent S. Lai internet banking The technology acceptance model (TAM) has been applied in different contexts to
investigate a wide range of information technologies (IT), and a cumulative tradition
has already been developed in this stream of research. Most TAM studies have been
empirical investigations, using the survey approach with great success.

MBA-PROGRAMME 54
54
TAM is a mature model and has been validated in different contexts. However, it still
needs to be empirically investigated for its invariance across different respondent
subgroups in order to make sure that different sample profiles would not have a
negative effect on the findings. Unfortunately, this has not happened in most TAM
research. Here, we applied different levels of invariance analysis on the TAM construct
in the context of Internet banking acceptance.
03 2012 Versha Mehta Self-Service
Technologies in
Banks
Self-service technologies have found an immense use in our daily activities owing to
the rapid advancement in technology, paradigm shift in the taste and changing life-style
of consumers as well. To provide maximum benefit to their consumers, the firms have
been continuously finding alternatives to services which are in consonance with
consumer's needs, expectation and life-style besides providing them the satisfaction.
Hence, present study is an understanding of factors that lead to the formation of
consumer's attitude towards using self-service technology and finally its acceptance.

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04 2011 Hala Al-Khatib
& Habin Lee
E-Government This paper proposes a conceptual model to explain user acceptance of E-Government
systems considering the diverse layers of user groups. Due to digital division
developing countries are providing e-Government services to heterogeneous user
groups including non-educated and less skilful citizens for using computer based
systems. Therefore this paper considers support quality of E-Government systems is
one of critical success factors and integrates the factor in a widely adopted user
acceptance and success model of information systems.
05 2012 Abdulaziz
Alrashidi
E-Government The study has been focused on the integration of motivation into the technology
acceptance model (TAM) and theory of planned behavior (TPB) towards using e
Government. An online survey was created to measure the user opinion about the e
Government ease of use, usefulness, and motivation.
06 2013 Hari Mohan &
Norani Ahmad
internet banking The objective of this study is to determine factors that influence individual intention
towards online banking In Malaysia. Specifically, the study examines the influence of
Self Efficacy (6 item), Trust (6 item), Perceived Ease of Use (5 item) and Media
reference (4 item) on the intention towards Online banking. Each variable is measured
using 7-point interval scale. To achieve a more balance findings among the internet
banking users in Malaysia, a total of 250 questionnaires to online bank customers at 4
major banks in Klang Valley, Selangor, and across the major cities in Penang, Ipoh &
Johor. 210 usable questionnaires were returned with a response rate of 84%. The data
was analysed using SPSS. It was found that Self Efficiency; Trust; Perceived Ease of
Use are significantly related to the intention to adopt internet banking among the users
in Malaysia. Perceived Ease of Use was the main determinant towards the intention for
online banking as compared to Self-Efficacy and Trust.

MBA-PROGRAMME 56
56
07 2013 Nurudeen
Abdulkadir &
Shehu Inuwa
Galoji
Mobile Banking This study extends the applicability of Technology Acceptance Model (TAM) and
Theory of Planned Behavior (TPB) constructs to investigate the significant factors
influencing users’ adoption of mobile banking services in one of the Malaysian public
universities. The research model was empirically tested through a survey. Data
collected from 125 respondents were analyzed by means of multiple regression.
Findings showed that perceived usefulness and social influence have significant impact
on mobile banking adoption.
08 2011 Yi-Hsuan Lee &
Yi-Chuan Hsieh
E-Learning This study intends to investigate factors affecting business employees’ behavioral
intentions to use the E- Learning system. Combining the innovation diffusion theory
(IDT) with the technology acceptance model (TAM), the present study proposes an
extended technology acceptance model. The proposed model was tested with data
collected from 552 business employees using the e-learning system in Taiwan. The
results show that five perceptions of innovation characteristics significantly influenced
employees’ e-learning system behavioral intention. The effects of the compatibility,
complexity, relative advantage, and trial ability on the perceived usefulness are
significant. In addition, the effective of the complexity, relative advantage, trial ability,
and complexity on the perceived ease of use have a significant influence. Empirical
results also provide strong support for the integrative approach.
09 2011 Henny
Medyawati
Marieta
E- Banking The object of this research is customers on the five major banks in the city of Bekasi
namely Bank Mandiri, BCA, BRI, Bank Danamon, and BNI. This study aimed to
analyze the implementation of E-Banking with the approach of Technology
Acceptance Model (TAM). The research method is a survey method with a descriptive
analysis and statistical analysis. The data is processed and analyzed by multiple linear
regression statistical models using statistical software. The results of this study indicate

MBA-PROGRAMME 57
57
Christiyanti &
Muhammad
Yunanto
that the person's ability to use computers, and interface design does not significantly
influence perceived ease of use. Experience of computer use, relevance, security and
privacy significantly influence the perceived ease of use.
10 2013 L. Hartmann, F.
Kerssenfischer
T. Fritsch, and T.
Nguyen
Customer Self-
Service Portals
The attitude of users towards an online customer self-service portal, which is newly
introduced by one of the biggest finance companies worldwide, is the focus of this
article. The Technology Acceptance Model (TAM), proposed by Davis in 1986, is
applied to evaluate 521 customer responses to a questionnaire consisting of 22
questions.
The authors choose partial least squares (PLS) as statistical instrument and define
“attitude of customers towards the online self-service portal” as the dependent variable.
Apart from this, six factors are specified to directly or indirectly correlate with attitude.
11 2013 Mohamed Gamal
Aboelmaged
and Tarek R.
Gebba
Mobile Banking This study aims at extending our understanding regarding the adoption of mobile
banking through integrating Technology Acceptance Model (TAM) and Theory of
Planned Behavior (TPB). Analyzing survey data from 119 respondents yielded
important findings that partially support research hypotheses. The results indicated a
significant positive impact of attitude toward mobile banking and subjective norm on
mobile banking adoption. Surprisingly, the effects of behavioral control and usefulness
on mobile banking adoption were insignificant.

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12 2011 Basheer A. Al-
alak
&
Ibrahim A.M.
Alnawas
E-Learning The aim of the study was to investigate Jordanian lecturers' attitudes towards the
adoption of e-learning system. A number of hypotheses were formulated for this
purpose. The findings of the study show that there existed positive relationship
between perceived usefulness, perceived ease of use, computer knowledge,
management support and intention to adopt. Whereas there existed negative
relationship between normative pressure, computer anxiety and intention to adopt.
Based on the results a number of recommendations were proposed, and suggestions for
future studies were made.
13 2013 Shallone K.
Chitungo
&
Simon Munongo
Mobile Banking Improvements in wireless technologies and increased uptake of advanced mobile
handsets have led to a growing trend in mobile banking activities on a global scale.
This empirical study sought to investigate the applicability of the extension of the
renowned framework of Technology Acceptance Model (TAM) in determining factors
that influence unbanked rural communities Zimbabwe‟s intention to adopt mobile
banking services. A self-administered questionnaire was developed and distributed in
Zaka, Chiredzi, Gutu and Chivi rural districts Out of the 400 questionnaires, only 275
useable questionnaires were returned, yielding a response rate of 69%.Results were
subsequently analyzed by the SPSS package. The findings indicate that the extended
TAM can predict consumer intention to use mobile banking.
14 2012 Geetha
Kallanmarthodi
and Malarvizhi
Vaithiyanathan
E-Banking Financial liberalization and technology revolution have allowed the developments of
new and more efficient delivery and processing channels as well as more innovative
products and services in banking industry. A strategic challenge facing banking
institutions today is the growing and changing needs and expectations of consumers in
tandem with increased education levels and growing wealth. Consumers are becoming
increasingly discerning and have become more involved in their financial decisions.
This study determines the factors influencing the consumer’s adoption of e-banking in

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